Google has introduced a new metric to its AdWords top of page bid estimates that will help AdWords users optimize their ads displaying above the search results.

As the name suggests, the estimated first page bid metric’ works by estimating the cost-per-click (CPC) bid suitable for your ad to reach the first page of Google search results when a search query exactly matching your keyword is entered. This estimate is based on the Quality Score and current advertiser competition for that keyword.

This new metric will complement the recently introduced Top Vs Side ad report segment which allows a user to see how their ads perform when displayed above and to the side of Google search results.

As explained by Google chief economist Hal Varian, a few months, back that the big difference between when the ad appears in # 1 position above the search results and in the # 1 position on the side of the search results is that the ads that appear above the search results tend to get substantially more clicks than those appearing on the side. So now, along with information on their Top Vs Side Report that helps in analyzing the relationship between ad location, clicks received and conversion ratios, advertisers can combine information from the new top of page bid estimates to plan and strategize an effective bidding strategy.

If you have a Google AdWords account you can see the metric in your stats table as follows

Go to the Keywords tab and click the Columns button.

Select Customize columns from the drop-down.

Check the Est. first page bid box and click Save

How do you interpret the results you get from the Top of Page Bid metric?
If you get a very high first page bid estimate for example higher than $100 it will be denoted by <$100 indicating that your keyword’s Quality Score is poor. It currently does not show bids greater than $100 top of the page bid estimates.

If you wish to viewing the bid values in other currencies, you will need to visit the bid simulator that gives you an insight into how bid values changes to specific keywords or ad groups and their subsequent affect on the clicks and impressions. The bid simulator estimates the click, cost and impression data that the ads would have received over the last seven days for different maximum CPC values and advertiser would have used.

For example, if you have a maximum CPC bid of $ 1.00 for your keywords and you are interested in knowing what results you would get with a bid of $1.50 or $1.75, the bid simulator predicts the clicks, cost and impressions you would have received with these other bids over the last seven days.

Even though this new metric looks very useful, I suggest not not relying on it solely, quite simply because meeting your first page bid estimate does not guarantee a top ad position or increased ad performance. Quality Score, CPC bid, a budget and account settings, user and advertiser behavior will still play a pivotal role in deciding your ad location and performance.